[Federal Register Volume 59, Number 243 (Tuesday, December 20, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-31152]


[[Page Unknown]]

[Federal Register: December 20, 1994]


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INTERSTATE COMMERCE COMMISSION

49 CFR Parts 1011 and 1130

[Ex Parte No. MC-222 (Sub-No. 1)]

 

Procedures for Shippers To Contest or Carriers To Rebill Motor 
Common Carrier Freight Charges Under Section 206 of the Trucking 
Industry Regulatory Reform Act of 1994

AGENCY: Interstate Commerce Commission.

ACTION: Final rule.

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SUMMARY: The Commission explains how it intends to handle any disputes 
that may arise concerning the applicability or reasonableness of motor 
common carrier rates under Section 206 of TIRRA.

EFFECTIVE DATE: The final rule is effective on December 20, 1994.

FOR FURTHER INFORMATION CONTACT: Lawrence C. Herzig, (202) 927-5536. 
[TDD for the hearing impaired: (202) 927-5721.]

SUPPLEMENTARY INFORMATION: Section 206 of The Trucking Industry 
Regulatory Reform Act of 1994, Pub. L. No. 103-311 (August 26, 1994), 
(TIRRA), creates new procedures for shippers seeking to contest motor 
carrier freight charges and for carriers seeking to rebill customers to 
collect additional freight charges.1 We addressed this provision 
in our recent policy statement observing,

    \1\As pertinent here, Section 206 provides:
    (3) A motor common carrier of property (other than a motor 
common carrier providing transportation of household goods or in 
noncontiguous domestic trade) shall provide to the shipper, on 
request of the shipper, a written or electronic copy of the rate, 
classification, rules, and practices, upon which any rate agreed to 
between the shipper and carrier may have been based. When the 
applicability or reasonableness of the rates and related provisions 
billed by a motor common carrier is challenged by the person paying 
the freight charges, the Commission shall determine whether such 
rates and provisions are reasonable or applicable based on the 
record before it. In those cases where a motor common carrier (other 
than a motor common carrier providing transportation of household 
goods or in noncontiguous domestic trade) seeks to collect charges 
in addition to those billed and collected which are contested by the 
payor, the carrier may request that the Commission determine whether 
any additional charges over those billed and collected must be paid. 
A carrier must issue any bill for charges in addition to those 
originally billed within 180 days of the original bill in order to 
have the right to collect such charges.
    (4) If a shipper seeks to contest the charges originally billed, 
the shipper may request that the Commission determine whether the 
charges originally billed must be paid. A shipper must contest the 
original bill within 180 days in order to have the right to contest 
such charges.
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    We do not foresee a great need for rate dispute resolution once 
carriers and their customers develop appropriate systems for quoting 
and confirming unfiled rates. Based on the economics of truck 
transportation there is little incentive for carriers or their 
customers to become involved in rate disputes.
    Under TIRRA, the future of motor carrier pricing is no different 
from pricing by other businesses in our economy. Industrial 
concerns, large and small, have devised systems for quoting, 
agreeing upon and billing prices for their products and services. We 
are confident that comparable methods will be devised for the 
trucking industry.2

    \2\Policy Statement on Regulatory Reform Act of 1994, 10 
I.C.C.2d 251, 257 (1994).
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    Recently, we have received inquiries about various aspects of 
Section 206. In order to avoid confusion, we will explain in greater 
detail how we interpret Section 206 and how we intend to handle Section 
206 disputes that may arise. We will consider taking further action if 
the need develops for establishing more formal rules and procedures.
    Section 206 provides an uncomplicated way to resolve any disputes 
concerning the applicability or reasonableness of rates charged by 
motor carriers of property (other than household goods or those 
providing transportation in noncontiguous domestic trade). First, it 
entitles the shipper to request and receive a written or electronic 
copy of the basis for the agreed-upon charges. If the shipper is not 
satisfied with the documentation provided by the carrier, it must 
contest the original bill with the carrier. Section 206 also allows the 
carrier to rebill the shipper for additional charges. The law allots a 
180 day period from the date the carrier issues the original freight 
bill for the shipper to contest the rate or the carrier to rebill. The 
180 day period is not the time to come to the Commission, although 
either party may do so if the carrier has already responded to the 
shipper's contest or the shipper has resisted the rebilling. In other 
words, shippers and carriers should file with us only to resolve 
disputes, not to satisfy the 180 day statutory period. The satisfaction 
of the 180 day statutory period is accomplished by the shipper 
contesting the rate with the carrier or the carrier rebilling the 
shipper. There is no explicit time limit for a shipper to contest 
rebilled charges. However we would urge shippers to do so promptly, and 
in any event no later than 180 days after rebilling, in order to permit 
carriers to obtain a determination from us as to whether any additional 
charges must be paid before going to court.
    In the event the shipper and carrier cannot resolve their dispute, 
the complaining party should file an informal complaint with us that 
documents the dispute. We intend to handle such cases informally under 
the rules at 49 CFR 1130. Filings with us must include either a copy of 
whatever the shipper submitted to the carrier to contest the charges 
and any response by the carrier or the carrier rebilling and any 
response by the shipper. We are delegating authority to the Suspension/
Special Permission Board to handle these complaints.
    If our handling of the dispute does not terminate it, the aggrieved 
party must be mindful of the statute of limitations for filing court 
actions which is now 2 years from the date the claim accrues but is 
reduced to 18 months on December 3, 1994, 49 U.S.C. 11706(a)&(b). 
Congress has given the Commission the jurisdiction to adjudicate these 
disputes, but only a court can order the payment of monies that may be 
owed. In other words, a court action must be filed within the statute 
of limitations period. Filing with the Commission does not toll the 
statute of limitations for bringing court action.

Environmental And Energy Considerations

    We conclude that the rule adopted here will not significantly 
affect either the quality of the human environment or the conservation 
of energy resources.

Regulatory Flexibility Analysis

    We conclude that our action will not have a significant economic 
impact on a substantial number of small entities. This action only 
involves delegation of responsibilities to the Suspension/Special 
Permission Board to handle these complaints.

List of Subjects

49 CFR Part 1011

    Administrative practice and procedure, Authority delegations 
(Government agencies), Organization and functions (Government 
agencies).

49 CFR Part 1130

    Administrative practice and procedure.

    Decided: December 8, 1994.

    By the Commission, Chairman McDonald, Vice Chairman Morgan, and 
Commissioners Simmons and Owen.
Vernon A. Williams,
Secretary.

    For the reasons set forth in the preamble, title 49, chapter X, 
part 1011 is amended as set forth below:

PART 1011--COMMISSION ORGANIZATION; DELEGATIONS OF AUTHORITY

    1. The authority citation for part 1011 is revised to read as 
follows:

    Authority: 5 U.S.C. 553; 31 U.S.C. 9701; 49 U.S.C. 10301, 10302, 
10304, 10305, 10321, 10762.

    2. In Sec. 1011.6 a new paragraph (a)(1)(iv) is added to read as 
follows:


Sec. 1011.6  Employee boards.

* * * * *
    (a) ***
    (1) ***
    (iv) To handle any disputes that may arise concerning the 
applicability or reasonableness of motor common carrier rates under 49 
U.S.C. 10762(a) (3) and (4).
* * * * *
[FR Doc. 94-31152 Filed 12-19-94; 8:45 am]
BILLING CODE 7035-01-P